DCP228 and Business Electricity
What is DCP228? DCP228 is a regulation to be introduced by Ofgem in April 2018 which will change the way busin...Read More
We understand it can be tricky organising your business’s finances, especially when covering essential costs such as energy. That’s why our guide is here to explain the VAT and CCLs paid on business gas and electricity tariffs to help you determine if you are eligible for a discount on these costs.
Most businesses pay 20% VAT on their gas and electricity bills. Energy suppliers automatically apply VAT to your bills, so if your business is eligible for a discount down to 5% VAT on energy, you need to apply for the VAT reduction separately.
To be eligible for the discounted 5% VAT for gas and electricity, you must meet these criteria:
If your usage is low enough, your energy supplier should automatically reduce the VAT amount for you. To be a low gas and electricity user, your business must:
To apply for discounted VAT on your business energy tariffs, you can use a VAT declaration form. You can get this form from your supplier, and apply for a rebate for the past four years of energy usage. You can apply for your VAT rebate from either your supplier or HMRC.
A Climate Change Levy (CCL) is a tax applied to business energy contracts to encourage commercial customers to increase their energy efficiency and reduce their emission levels.
If you are eligible to apply for discounted VAT, you are also likely to qualify for immunity from paying the main rates of CCL
If you are not eligible for immunity from paying the main rates of CCL, you receive a discount on CCL tax by signing a Climate Change Agreement (CCA). The conditions within a CCA mean that when you sign, you are agreeing to make certain alterations to your business to improve its energy usage and reduce its emission levels.
If you require any help with determining your eligibility for the available VAT and CCL discounts, get in touch on 0800 411 8830 and our team will happily advise you.
If you feel you are spending too much on your energy bills, you can start tackling this by comparing a wide range of energy tariffs with our online comparison service. We work with a variety of suppliers and find gas and electricity rates tailored to your business’s usage, so you can feel secure knowing you’re getting the best deal for your business.
"Quick, simple, responsive and honest feedback across a number of suppliers has saved us significantly on our renewal quote. I can’t fault the service received"This review was posted by Mark on the 23rd of April 2018
Mark Weeks was very helpful in seeking…
"Mark Weeks was very helpful in seeking to obtain the cheapest rates in the market and went out of his way to follow-up on queries I raised."This review was posted by Rob Warne on the 20th of April 2018
"Mark Weeks, Helpful as ever. Allways responsive. Recommend! MD Silchester Control Systems"This review was posted by Michael Cottle on the 20th of April 2018
Had a problem with our electricity…
"Had a problem with our electricity supply being switched to us by out landlord without notice and put on to out of contract rates with a supplier we do not like. Nicole from Switchmybusiness.com understood where we were coming from and out urgent need to get cheaper contact rates. Nicole provided valuable assistance guiding us through the process and maintaining great communication throughout. A pleasure to deal with."This review was posted by Phil on the 19th of April 2018
Excellent service from Janis Sargeson
"Excellent responsiveness from Janis - easy to understand tariff information and fast service. Ours was not a large account by value, but proportionally we more than halved the cost of the electricity supply."This review was posted by Andy Longden on the 18th of April 2018